Argentine presidential candidate accused of promoting crypto scam

Argentine presidential candidate accused of promoting crypto scam

Presidential candidate Argentina accused of promoting crypto scam

One of the main contenders for the presidency of Argentina, Javier Miley, was sued for promoting an alleged cryptocurrency Ponzi scheme, according to Clarín.

In December 2021 The writer and libertarian economist posted on Instagram for his 1.3 million followers a video of a visit to the office of the investment platform CoinX.

Presidential candidate Argentina was accused of promoting a crypto scam

Miley (left) at the CoinX office. Data: Instagram.

The company offered clients an income of up to 8% per month on investments in cryptocurrency. She claimed to use artificial intelligence, bots of experienced traders, and asset diversification to generate high profits.

«They are revolutionizing the way they invest to help Argentines avoid inflation. From now on, you can simulate your investments in pesos, dollars or cryptocurrencies and make a profit. Write to CoinX on my behalf so that they recommend you the best», Milay said in a post.

Earlier, the politician spoke out in support of bitcoin and called central banks a scam.

CoinX has been running an active social media campaign for several months. However, since March, the platform has stopped making payments to investors. The company ceased operations in June after the National Securities Commission of Argentina issued a warning about the lack of approval to conduct activities.

The platform did not return all funds to users. According to lawyer Juan Pablo Chiesa, who filed a lawsuit against Milei, the damage is up to 40 million pesos (~$293,000).

The lawyer noted that for some users, the statements of the economist as a subject matter expert have become an incentive to invest in CoinX.

After the appearance in the public sphere of suspicions in connection with the platform, Miley and his representatives made attempts to distance themselves from the alleged fraud scheme. The politician said he met with the company to advise on its business strategy.

According to Chiesa, questions about Milei's joint and several liability will disappear if he proves that it is a regular paid advertising on social networks and shows the relevant contract . However, the lawyer is sure that such a document does not exist.

Recall that in the United States a lawsuit was filed against billionaire Mark Cuban for promoting a Ponzi scheme associated with the crypto broker Voyager.

In October 2021, the company signed a five-year partnership agreement with Cuban-owned NBA club «Dallas Mavericks».

In July, Voyager filed for bankruptcy.

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